I have a '96 Silverado. Fuel gauge would operate from just over 'full' when I filled up, but would not drop below '1/2' even when the tank was empty. After replacing the fuel pump and sending unit (40 days ago), the gauge was working correctly except for some slight 'bouncing' when coming to a stop or accelerating from a light. Starting last week the gauge now stays on 'empty' all the time no matter the actual fuel level. When I turn the ignition off, the gauge goes to a '1/4' tank reading. Any suggestions?

 

Did you use a Delco or Delphi pump when you replaced it? I have heard many times that the cheap off brand pumps fail quickly. This might not be the case but the pump could be working with the sending unit not working.

 

I had my whole instrument cluster rebuilt by a local shop. My fuel gauge, and a few others had similar issues to what you describe, and that solved my problems. I'm drawing a blank on the correct terminology for the mechanism that actuates the gauge, but they showed me if you tap on the gauge needle and it bounces around as it rotates, it's bad. It should travel throughout the range of motion smoothly without bouncing around like a guitar string.